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Sat, Nov 05, 2005

Cirrus Acquires SATSAir Air Taxi

Greenville, SC Firm Operates SR-22s Under Part 135

One of the most innovative air charter operators of the new century, SATSair Air Taxi of Greenville, SC, is going forward under a new banner.

It's been acquired by one of the most innovative airframe manufacturers of the new century, Cirrus Design Corporation. SATSAir was a Cirrus customer beforehand, but now that it's reforming as a Cirrus subsidiary, it will be adding an additional 100 Cirrus SR22s.

"SATSair" stands for Smart Air Travel Solutions Air, while at the same time making a nod towards NASA's SATS -- Small Aircraft Transportation System, the well-publicized research program into the future of light aircraft transportation.

Cirrus President and CEO Alan Klapmeier said, "This acquisition follows Cirrus philosophy to engage in pursuits that ultimately grow the industry." Klapmeier has spoken passionately to us before about the need to bring the benefits of general aviation to new markets and new people -- people who aren't yet thinking of what GA can bring to their lives. An example of his attitude is the evident pride that Klapmeier takes in that subset of Cirrus customers who bought a Cirrus and learned to fly in it, with no prior aviation experience.

"[W]e will focus on the continued expansion of the air taxi operation and development of a personal transportation network -- to include air-taxi service, leased aircraft and other areas in development," Klapmeier said. The other areas, Klapmeier hinted, may include expanding the SATSAir model with non-Cirrus aircraft, more likely as a complement to than a replacement for the SR-22.

Cirrus may change some things, but the fundamentals of the Greenville, SC, company's business model will stay the same. "[O]ur business model has shown great acceptance with piston single engine aircraft," Klapmeier (below) said.

SATSAir Air Taxi managed to break a regulatory taboo on charter operations, which have always been forbidden from using single-engine piston planes at night or in instrument conditions. SATSAir was able to develop a concept under which the company was certified to operate its Cirrus SR22 aircraft all weather, day or night, under instrument flight rules.

"The magic words to the FAA," SATSAir founder and CEO Steve Hanvey told Aero-News this summer, "are 'equivalent level of safety.' Show the FAA that what you are doing is as safe as another operation, and they will approve it. But you have to prove what you say."

Hanvey (below) found that the safety features of the SR22, particularly the Cirrus Airframe Parachute System, helped him develop a concept that satisfied the FAA that SATSAir truly maintained an equivalent level of safety to traditional twin or turbine 135 operators.

The SATSAir concept extends beyond just employing a safe airplane. Pilots must meet experience requirements higher than those of some regional airlines, and undergo comprehensive training to high standards. Every pilot must pass a line check every six months.

Charter operations, often called "Part 135" from the applicable Federal regulations, allow users to board a plane at one place and have it take them to another, much like taking a taxi in the city. The convenience is greater than airline flight; you can leave from closer to home, land closer to your destination, and above all, fly on your own schedule.

With charters the province of costly multiengine and jet craft, they have generally been seen as exclusively for the well-to-do. The SATSAir Air Taxi concept extends its reach well down the market. "The air taxi concept has been successful because people sense there’s a high ratio of value to cost," Steve Hanvey said.  "Utilizing the piston single-engine airplane in such a manner is an industry-changing event. We are introducing a new segment of the population to the tremendous lifestyle advantages that can only be obtained through personal aviation."

Hanvey is quick to point out that the benefits of the SATSAir model don't just accrue to the firm's customers and employees. They also benefit small airports and the businesses that are based at and/or serve such airports.

According to Hanvey, his customers are a loyal bunch, who start by trying the service and then wind up using it much more heavily. He did lose one customer, though -- in a way.

"He liked it so much that he bought his own Cirrus and learned to fly it."

"I can live with that," Alan Klapmeier dead-panned.

FMI: www.cirrusdesign.com, www.satsair.com

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